Can SA survive the fallout of US's decision to leave Iran deal?

14 May, 2018, 13:29 | Author: Sara Gill

Oil prices could rally to $100 a barrel next year, a level not seen since 2014, as supply risks in Venezuela and Iran strain global markets, according to Bank of America Corp. Military tensions between Iran and Israel have already mounted, and oil prices are rising on the uncertainty. The "These sanctions do impact all of the major industries", he added. The sanctions will not only bar USA companies from doing business with Iran, but they also will hurt European and other companies by prohibiting them from using American banks unless they cut links with Iran. There will be a 180-day period for countries to wrap up existing contracts and achieve "significant reductions" in their purchases of Iranian crude, although Mnuchin did not spell out what the administration meant by the term.

On Wednesday, a separate OPECsource had saidSaudi Arabia was monitoring the impact of the USA move on oil supplies and was ready to offset any shortage but would not act alone. "When the American sanctions are in place, importing equipment to Iran for a joint project would be a problem". But Chinese refiners said there were alternative suppliers, especially in Russia, Saudi Arabia and West Africa.

While the chants of "Death to America" were few, Iranians are sincerely angry over Trump's decision and many are siding with the hard-liners, who have always been suspicious of the West.

British Prime Minister Theresa May and Trump agreed in a phone call that talks were needed to discuss how USA sanctions on Iran would affect foreign companies operating in the country.

Meantime, it seems that the oil market is already in a bit of a supply/demand deficit.

United States crude inventories C-STK-T-EIA fell by 2.2 million barrels in the week to May 4, to 433.76 million barrels, according to the Energy Information Administration (EIA), slightly above the 420 million barrels five-year average level. US output is creeping closer to that of top producer Russian Federation, which pumps about 11 million bpd. The harsher approach by the United States could result in an initial loss of about 500,000 barrels a day (bpd) in Iran's output, which is now 3.8 million bpd. It may signal stronger-than-expected demand in Asia and underpin prices.

The Iran-Saudi conflict in Yemen looks to have escalated. That has stoked fears of shortfalls given the continuing declines in Venezuelan oil production and growing geopolitical risks to oil supplied by Libya, Nigeria, and elsewhere.

He said the effects of the USA move were already being felt in rising oil costs and an increase in political uncertainty in the Middle East.

This would make the United States the world's largest producer, ahead of both Russian Federation and Saudi Arabia.

The EIA on Tuesday raised its forecast for US output in its monthly report to 12 million bpd late next year.

Cilliers said the effect of these actions on oil prices could undo the boost to the South African economy since President Cyril Ramaphosa took office. That's about 1 million barrels a day more than in early 2016.

Analysts had little hope that opposition to the US action would prevent sanctions from going ahead.

Russian Federation lacks the expertise to develop complicated new projects, which could result in output peaking in 2020 and declining thereafter.

Market also continue to weigh a steady increase in USA production levels as the rise in US drilling marked one of the few factors pressing back crude/fuel prices.

USA drillers added rigs for the sixth straight week, bringing the total rig count to 844, highest since March 2015, General Electric Co's Baker Hughes energy services firm said. That was the fifth consecutive weekly increase in the rig count, underscoring worries about rising US output. As oil can be freely traded, there is, broadly speaking, one world oil price. PSA Peugeot Citroen, for example, sold more than 3.6 million vehicles worldwide a year ago.

The Trump government previously announced that the United States would withdraw from the Trans-Pacific Partnership free trade agreement and the Paris Agreement on countermeasures against climate change. The Trump ad-ministration has drawn a hard line, demanding a $200 billion cut in the Chinese trade surplus with the United States, sharply lower tariffs and advanced technology subsidies.

Recommended:

As is the case throughout the occupied West Bank, the expanding settlements are guarded by a constant Israeli military presence. Israel's army said it would nearly double the number of troops surrounding the Gaza Strip and in the occupied West Bank.

I get choked up, because she's such a good mum. "I can't wait to tone up again and get my body back to where it was", she added. Khloe's mental state wasn't the only thing she dished about, though! " Khloe and I have similar parenting styles".

It was the second blown save in four appearances for Kimbrel, who recently became the fastest reliever to 300 career saves. Aaron Judge came up next and hammered the baseball to center field for his ninth home run of the season and made it 9-6.

When she went outside to investigate, she witnessed a large black bear dragging her five-year-old daughter. A five-year-old girl was seriously injured after she was attacked by a bear early Sunday morning.

However, following the leak of CBSE Class 12 Economics re-examination, the board chose to re-conduct the exam on April 25. In the regular category candidates, 8,30,942 examinees appeared of which the 10419 did not attend the exams.

Schalke had already wrapped up second place, but it was between Dortmund, Leverkusen and Hoffenheim for the remaining two spots. Violence broke out towards the end of the game, forcing the players off the pitch as police tried to control the situation.

During Roy's tenure as the joint commissioner of police (crime), a batch of officers started emulating his appearance. Nagarkar said, adding like all patients going through hard illnesses, Roy was taking counselling therapy.

That is basically the feeling with the Sixers after losing to the Boston Celtics 4-1 in what was a tightly contested series. Boston makes a defense work for the entire 24 seconds, Cleveland has not been good at second and third defensive efforts.

The Racing back-up took the place of Dan Carter - the victim of a hamstring injury - on the bench just before kick-off . The game kicks off at 5.45pm local time so we'll be on air for 4.45pm with full commentary and analysis.

May 15 will also be a day of "confrontation" with the Israeli army "in all border areas", organizers said. Israel says it has acted to defend its border and has accused the protests of being directed by Hamas.

FCC fines man $120M for sending millions of robocalls
The Federal Communications Commission wants to crack down on the growing scourge of "robocalls" to personal cell phones. The agency says companies Adrian Abramovich controlled were behind nearly 100 million robocalls over three months.

Preparations underway for US-N Korea summit
He returned on a separate plane, joining Trump, first lady Melania Trump and Vice President Mike Pence on the tarmac. On top of that, Trump's team has few experts who have actually met or spoken to a North Korean official.

Seoul to re-examine arrival of North Korean restaurant workers
That decision was later reiterated by South Korea's Presidential Blue House in the days following a historic inter-Korean summit. He said the USA wants to ensure that its efforts yield the end result, that North Korea should not become a threat to the world.

AT&T chief says hiring Michael Cohen was a 'big mistake'
After law school, he joined AT&T as an attorney in 1993 and later ascended the ranks of the company's massive lobbying operations. So when he took office, there were concerns within AT&T and Time Warner that he or his aides would try to block the deal.